Switzerland pharma market losing its ranking, and has challenges ahead, says BMI

In Business Monitor International's Business Environment Ratings for the second quarter of 2010, Switzerland remains placed second, having lost its pole position in Europe to Germany in fourth-quarter 20009. Globally, the country is no longer within the top five, now placed sixth, between Australia and Belgium, out of the 71 markets surveyed in BMI's pharmaceutical universe.

Moreover, it notes, Switzerland may fall further down the world ranking as large, high-growth emerging markets such as Brazil and China become more alluring to multinational drugmakers in the medium to longer term.

Switzerland's drug market was valued at 5.9 billion Swiss francs ($5.5 billion) in 2008, with this figure rising to 6.1 billion francs 2009, despite the flat performance of the over-the-counter (OTC) segment. According to IMS figures, the market rose by 3.4% in value in 2009, reaching 4.9 billion francs at ex-manufacturers prices. The rate of increase was slower than in previous years (some 5.5% in 2008), as the higher uptake of generics played a major role in market development. In fact, hospital-used generics increased by 3.9% year-on-year in value to 449 million francs in 2009. Through to 2014, BMI forecasts that the value of the Swiss pharmaceutical market will post a compound annual growth rate (CAGR) of 2.0% in local currency, reaching 6.7 billion francs, with the following five years proving to be even more challenging.